Tweedy Browne

Tweedy Browne

Last Update: 05-12-2016
Related: Tweedy Browne Global Value

Number of Stocks: 50
Number of New Stocks: 2

Total Value: $3,632 Mil
Q/Q Turnover: 6%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Tweedy Browne Watch

  • 3 Guru-Held British Stocks That May Be Impacted by Brexit

    In just a little over a week, the U.K. will vote on June 23 whether to stay in the European Union, in response to growing calls from the Conservative Party and the U.K. Independence Party, who say it’s been too long since Britons last voted to stay in the union in 1975.


    Bloomberg Monday speculated about what the first 100 days may look like should Brexit happen, predicting chaos and loss of confidence through the rest of the EU. President of the EU Donald Tusk has said Brexit could lead to the end of “western political civilization itself.”

      


  • Tweedy Browne Comments on Standard Chartered Bank

    While our bank stocks as a group were being buffeted by slowing global growth, increasing concern about the Chinese economy and collapsing oil prices, it is our position in Standard Chartered Bank (LSE:STAN) that has to date proven to be the most disappointing. As you know from our prior letters, we first purchased shares in this emerging market dependent bank back in 2013, after it had declined from 18 pounds to approximately 13 pounds per share, a price we felt did not adequately account for its future prospects. As Will Browne has sometimes said, “there is a fine line between being early and being wrong.”


    At the time of purchase, Standard Chartered, in our view, was conservatively financed, traded at a significant discount to our estimates of its intrinsic value, and paid an attractive dividend. That dividend was omitted last November due to mounting capital concerns, loan losses and uncertainty associated with the bank’s oil & gas loan book. As of fiscal year-end, Standard Chartered was priced at roughly 50% of its tangible per share net asset value (book value). If Standard Chartered’s earnings power were to recover to a 10% return on tangible equity (based on today’s book value), it would generate a 20% after-tax earnings yield on the current price. In other words, the current stock price would be 5 times after-tax earnings, if earnings recover to a 10% return on equity. In the past, banks in Asia have been acquired at significant premiums to tangible net asset value and at more than 10 times after-tax earnings. The bank is in the midst of a restructuring with new management, and appears to be taking all the right steps to put it back into a more competitive and more profitable position. That said, the near-term headwinds are significant. We continue to monitor the position carefully, and have eliminated it from our Worldwide High Dividend Yield Value Fund because it suspended its dividend.

      


  • Tweedy Browne Funds' Investment Adviser's Letter to Shareholders

    “Interest rates are, of course, prices. They are the prices that set investment hurdle rates and that discount the present value of estimated future cash flows. They are the traffic signals of a market economy.”

      


  • Tweedy Browne Fund 1st Quarter 2016 Commentary

    High equity valuations combined with increasing macroeconomic worries, not the least of which is the sense that monetary largesse may have run its course, continued to roil global equity markets in the first quarter. After a turbulent start to the New Year similar to that faced late last summer, equity markets rather quickly regained their composure to finish the second half of the quarter with a flourish, recouping much of the losses they suffered in the first half of the quarter. With the exception of the Wordwide High Dividend Yield Value Fund, which modestly underperformed its benchmark over the last three months, our remaining three Funds all outperformed their benchmarks in the first quarter, which led to an index beating result, albeit negative, over the last fiscal year in our two global value funds.

      


  • Tweedy Browne Global Value Invests in Bank of New York Mellon

    Tweedy Browne Company LLC, a successor to Tweedy & Co., was first established by Forrest Birchard Tweedy in 1920 as a dealer in closely held and inactively traded securities. The firm’s 96-year history is grounded in undervalued securities, first as a market maker, then as an investor and investment advisor. The firm takes a value investing approach that focuses on long term investments very similar to Joel Greenblatt (Trades, Portfolio), Seth Klarman (Trades, Portfolio) and the founder of value investing Benjamin Graham.


    During the first quarter, the Tweedy Browne (Trades, Portfolio) Global Value Fund purchased 1,315,780 shares of Bank of New York Mellon Corp. (NYSE:BK).

      


  • Tweedy Browne Global Value Buys 5 New Stocks in Q1

    Tweedy Browne (Trades, Portfolio) Global Value, an outperforming value fund founded in 1993, updated its first quarter portfolio changes this week, revealing five new stock purchases.


    Tweedy Browne (Trades, Portfolio) purchased two stocks from Hong Kong, one of its smallest country allocations at fourth quarter end and one stock from Germany, one of its larger country allocations. Managers’ purchase of Bank of New York Mellon Corp. (NYSE:BK), the largest new position, slightly expanded the fund’s weighting in its largest sector, financials. Finally, it purchased Avent Inc., a U.S. computer hardware company.

      


  • Tweedy Browne Global Value Adds Shares of AGCO

    Tweedy Browne Company LLC, a successor to Tweedy & Co., was first established by Forrest Birchard Tweedy in 1920 as a dealer in closely held and inactively traded securities. The firm’s 96-year history is grounded in undervalued securities, first as a market maker, then as an investor and investment advisor. The firm takes an investment approach similar to Benjamin Graham, who personally mentored one of the luckiest and most successful investors of all time, Warren Buffett (Trades, Portfolio).


    In the first quarter of 2016, the Tweedy Browne (Trades, Portfolio) Global Value Fund added 256,998 shares of AGCO Corp. (NYSE:AGCO).

      


  • Tweedy Browne Trims Stakes in Financial Stocks

    Guru investment advisory and fund management firm Tweedy Browne (Trades, Portfolio) neither bought nor sold stakes in the fourth quarter and added to only a handful. Nearly all of its activity involved reductions of stakes in its portfolio.


    Tweedy Browne (Trades, Portfolio) slashed its stake in Torchmark Corp. (NYSE:TMK), a McKinney, Texas-based financial services holding company, by 82% with the sale of 1,139,729 shares for an average price of $58.61 per share. The transaction had a -1.91% impact on Tweedy Browne (Trades, Portfolio)’s portfolio.

      


  • Tweedy Browne Reopens Global Value Fund II

    Re-opening of Tweedy Browne (Trades, Portfolio) Global Value Fund II



    The Tweedy Browne (Trades, Portfolio) Global Value Fund II – Currency Unhedged will reopen to new investors on February 1, 2016. As you will recall, the Fund was closed to new investors back in August of 2014, as it had become difficult to invest new subscriptions in the face of rising equity valuations. More recently, flows have become more manageable, and we now believe that the addition of new assets can be managed effectively, without risk of diluting returns to existing shareholders. This is especially true given the enhanced volatility in global equity markets of late which has begun to stimulate new idea flow.

      


  • Tweedy Browne Fund 4th Quarter Commentary

    The Tweedy, Browne Funds produced modestly positive returns in the 4th quarter of 2015, capping off what was in general a rather difficult year for value investors. Each Fund’s cash reserves, low weightings in Japan and the U.S., oil & gas component, and overall value exposure weighed on relative returns. The spread between the value and growth components of the benchmark indices widened considerably in favor of growth during the year. In fact, the so called “FANG” stocks (Facebook, Amazon, Netflix, and Google), which, in our view, trade at exorbitant multiples of earnings power, accounted for about half the return of the MSCI World Index when measured in local currencies. While this kind of divergence is not at all uncommon in the later stages of a bull market as equity valuations become untethered from underlying intrinsic value, it’s hard to recall a previous period when the so called “smart money” seemed so dumb.


    It is not surprising, as market volatility increased in the second half of the year, that the food, beverage, and tobacco component of our Fund portfolios produced the strongest returns. This included strong results for the quarter in Unilever, Philip Morris International (NYSE:PM), and Heineken, with the latter’s strength largely related to the derivative impact of the proposed InBev/SAB Miller deal on beer company valuations. The healthcare segment of the portfolio also stood out, with solid results in Baxalta (NYSE:BXLT), the spinoff from Baxter, which announced shortly after quarter end that it would be acquired by Shire (NASDAQ:SHPG) at a substantial premium. Its former parent, Baxter International, Johnson & Johnson, GlaxoSmithKline, and Roche also produced very nice returns during the quarter. We also had very solid returns in several of our insurance holdings including SCOR, Zurich Insurance Group and Munich Re.

      


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